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Waterstones has said that it does not “invite” tips in its cafés or bookshops because that requires a system of reporting to HMRC for tax that the chain does not have in place.
The retailer was responding to claims online that it does not “allow” café staff to accept tips. The point was raised on Twitter by Ash Sarkar, contributing editor at Novara Media, who noted: “So [Waterstones Piccadilly] don’t allow their café staff to keep their tips. I’m not going to spend any money there until they do. Anyone else?” She later added that she’d been told that café staff at the Piccadilly branch are instructed by managers to put cash tips in the charity box, and that there was no option for keeping discretionary service charge paid by card.
One person responded that asking workers to put any tips in the charity box was “out of order,” adding that “although it’s a good thing to give to charity, that’s not people’s intention when they hand over their hard-earned money. They are giving to the individuals in appreciation for the good service provided”.
Others called it “shameful” and “ridiculous” and stated they would not be shopping at the branch until the policy changed.
So, @WaterstonesPicc don’t allow their cafe staff to keep their tips.
I’m not going to spend any money there until they do. Anyone else?
Waterstones responded to Sarkar’s tweet, which has garnered more than 4,000 impressions on the site including retweets and likes, stating: “There’s no question of staff not keeping tips, the fact is that Waterstones does not accept tips. This applies in cafés as it does in our bookshops. To accept them requires a system of reporting to HMRC for tax which we don’t have. If a customer insists, we suggest the charity box.”
In a longer statement issued to The Bookseller, a spokesperson elaborated: “We do not withhold tips but rather do not invite them, having no “tip box” or such like. This is for the simple reason that tips have to be accounted to HMRC to ensure they are taxed properly and we run our cafés through our bookshop till systems and bookshop HR processes. As such, we have no way to account for tips to HMRC and, in the absence of investing in an appropriate system, cannot accept them and be compliant with HMRC rules.
“Given the minimal potential benefit – in most shops, staff work across both cafés and the bookshop, so any tips would be shared across a lot of people – such an investment is not sensible. If a customer wishes to tip, we suggest donating to a charity box instead.”